Global Update
UnplUgged collection
Guest bedroom at Korakia Pensione in Palm Springs ,
California , developed by Paul
Makarechian ’ s Makar Properties .
Paul Makarechian says technology is one very important element of his business plan that gives his Makar Properties an opening to develop an independent collection of hotels that can compete with the global brands .
“ Long gone are they days when you have to spend a ton on media to build a brand ,” says the president and CEO of the Newport Beach , California-based operation . “ Technology can empower smaller operators . If you have a thoughtful approach to guest services , experiences and touch points , those memories are all resoundingly amplified on social media , which is why these attributes matter more today and are tougher for brands to execute at their size … Guests are now your best promoters . Their words mean 10 times more than ads and are driving tons of business for us . It ’ s a long , hard road – but worth it .”
The original developer in the late 1990s of the poorly timed and ill-fated St . Regis Monarch Beach in Dana Point , California , [ the AIG Effect hotel ] who went on to develop a small group of institutionally backed , big branded hotels has learned his lessons and is taking a different tact during this next go-round as a developer now using “ family and friends ” private capital .
In fact , Makarechian recently made news by selling “ for a great return ” one of his three hotels – The Goodland , a modern ‘ surf shack ’ just outside Santa Barbara , California , managed by Kimpton – to KHP Capital Partners , the San Francisco-based investment arm of the former Kimpton leadership team . What remains is the owned and managed Korakia Pensione , a romantic 28-room Moroccan hideaway in Palm Springs , California , and Lone Mountain Ranch in Big Sky , Montana , a 100-year-old luxury guest ranch offering everything from wintertime sleigh rides to fly fishing .
Content , design , amenities and services at all three hotels were carefully curated and now Makarechian says he is ready to further grow his curated approach with potential deals in the offing in Southern California . He also wants to look in unique markets that don ’ t have as deep a hotel base and are missing an experiential-type property . “ We are careful about what we add to the collection so we can confidently curate a unique experience and self manage properly ,” he adds .
Makarechian says The Goodland deal “ is a great testament to what we are doing ,” adding that the move was made partially because Makar wants to self manage – and
the capital infusion will help bring deals in the pipeline closer to the finish line .
As real estate developer whose initial hotel experience led him to realize he wanted a more cohesive owneroperator focus to maneuver more nimbly , Makarechian says he has identified a sweet spot with struggling assets primarily in the Western U . S . that are too small for institutional investors , yet too big for mom and pop operators to manage efficiently . “ I felt if we could acquire irreplaceable assets with beauty , authentic to their locations and improve on them by offering something more unique to market , we would be successful ,” he says .
To date , Makarechian , 41 , says he has been successful with his current collection by not necessarily capturing the highest rate , but by capturing a loyal following . “ We are not priced out of market and offer a lot more exciting experiences for the price point ,” he says . “ We are more 4-star experiential for customer who wants something different and want us to help them connect with the destination … We are merging the role of GM , concierge and owner , who highly curate the experience start to finish to create incredible memories .”
14 HOTELS November 2015 www . hotelsmag . com